Mastercard and Ally Financial Teaming up on POS Installment Lending Program
Ally Financial (NYSE: ALLY) is entering the point-of-sale (POS) installment lending segment through a new tie-up with Mastercard (NYSE: MA). Ally announced Tuesday that its Ally Lending subsidiary has established a partnership with Mastercard's POS installment loan platform Vyze, under which Ally Lending will serve as the financier of the loans.
By doing so, Ally said, it is hopping on a trend among U.S. consumers and retailers. Technological advances have made POS installment lending a relatively quick and easy option for a wide range of items. The bank cited research from FinTech World Report 2019 indicating that retailers utilizing POS installment financing enjoy an average 32% boost in sales, along with a 75% gain in order value.
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Source Fool.com
